How to pay taxes when doing cross-border e-commerce with Shopee? Do I have to pay taxes on cross-border income?

Now more and more merchants are opening stores on Shopee. For Shopee merchants, there are many problems that need to be solved after opening a store, such as paying taxes. If you do cross-border e-commerce on Shopee, how do you pay taxes? The following content will introduce it.

How to pay taxes for cross-border e-commerce in Shopee?

To promote the sustained and healthy development of cross-border e-commerce and cultivate new trade formats and models, the tax policies on cross-border e-commerce retail export goods in the Cross-border E-commerce Comprehensive Pilot Zone (hereinafter referred to as the Comprehensive Pilot Zone) are hereby notified as follows:

1. For e-commerce export enterprises in the comprehensive pilot zone that export goods without valid purchase certificates and meet the following conditions, a trial VAT and consumption tax exemption policy will be implemented:

(1) E-commerce export enterprises shall be registered in the comprehensive pilot zone and register the export date, name of goods, unit of measurement, quantity, unit price and amount on the cross-border e-commerce online comprehensive service platform at the place of registration.

(ii) Export goods shall go through e-commerce export declaration procedures at the customs of the comprehensive pilot zone.

(III) The exported goods do not belong to the goods for which the Ministry of Finance and the State Administration of Taxation have clearly canceled the export tax refund (exemption) according to the decision of the State Council.

2. The leading group offices of each comprehensive pilot zone and the competent commercial departments shall coordinate and promote communication and cooperation among departments and the implementation of relevant policies, accelerate the establishment of an e-commerce export statistics monitoring system, and promote the healthy and rapid development of cross-border e-commerce.

3. The General Administration of Customs shall regularly transmit the electronic information of the e-commerce export commodity declaration list to the State Administration of Taxation. The taxation authorities of each comprehensive pilot area shall strengthen the duty-free management of export goods based on the electronic information of the export commodity declaration list cleared by the State Administration of Taxation. The specific duty-free management measures shall be formulated by the provincial taxation departments in consultation with the finance and commerce departments.

4. The comprehensive pilot zone referred to in this notice refers to the cross-border e-commerce comprehensive pilot zone approved by the State Council; the e-commerce export enterprises referred to in this notice refer to units and individual industrial and commercial households that build their own cross-border e-commerce sales platforms or use third-party cross-border e-commerce platforms to carry out e-commerce exports.

Do I need to pay tax on cross-border income?

No VAT is required.

According to the announcement of the State Administration of Taxation on the re-issuance of the "Administrative Measures for VAT Exemption for Cross-border Taxable Services in the Reform of Business Tax to VAT (Trial)"

All income from cross-border services obtained from abroad is not subject to value-added tax.

According to the announcement of the State Administration of Taxation on the re-issuance of the "Administrative Measures for VAT Exemption for Cross-border Taxable Services in the Reform of Business Tax to VAT (Trial)"

Article 5 Where a taxpayer provides cross-border services to an overseas entity for a fee, all income from such services shall be obtained from overseas, otherwise, VAT shall not be exempted. The following circumstances shall be deemed as income obtained from overseas:

(1) Income obtained by taxpayers from the Civil Aviation Administration of China Settlement Center, China Aviation Clearing Co., Ltd. or the permanent representative offices of foreign air transport enterprises established with the approval of the Civil Aviation Administration of China when they provide logistics support services to foreign air transport enterprises.

(2) A third-party clearing company refers to a clearing company that undertakes the centralized operation and management of funds for member units within a multinational enterprise group, including financial companies, fund pools, and clearing centers.

(3) Other circumstances prescribed by the State Administration of Taxation.

Article 6: Where taxpayers provide cross-border services exempt from VAT, they shall separately account for the sales of cross-border services and accurately calculate the input tax that cannot be deducted. Special VAT invoices shall not be issued for their tax-exempt income. Where taxpayers provide cross-border services exempt from VAT, they shall separately account for the sales of cross-border services and accurately calculate the input tax that cannot be deducted. Special VAT invoices shall not be issued for their tax-exempt income.

The questions raised at the beginning have been introduced in the above content. Since you have decided to open a store on Shopee's cross-border e-commerce, you need to understand the need for taxation. It is also necessary for merchants to learn relevant skills after opening a store.

Recommended reading:

How to join Shopee cross-border e-commerce? What are the conditions for joining?

Can I reapply if the Shopee review is closed? What is the reason for the review failure?

Is it illegal for Shopee to reduce inventory? What are the violations?